Global IT services provider L&T Infotech Ltd. is set to broaden its presence in the Canadian outsourcing market following what the India-based companys CEO called a good acquisition of Citigroup Canadas IT outsourcing arm. L&T Infotechs IT service portfolio aims for end-to-end coverage, said Banerjee, which includes general software development, maintenance, remote infrastructure, business intelligence, data warehousing, independent testing services.The companys focus will remain the large enterprise market given these customers understand how outsourcing fits in their often-global operations, said Banerjee. They are amenable because they themselves have global operations, theyve seen the benefits of scale, theyve seen the benefits of engaging in global vendors, said Banerjee.
We hope that we will be able to enhance the size of the Mississauga facility and be able to take this expertise to other places.
L&T Infotech bought Citigroup Fund Services Canada Inc.s IT outsourcing business in November.
The facility currently employs about 215 people. L&T hopes to add about 100 jobs in the coming year.
Its another sign of how Canadas reputation for stability during the global financial system meltdown has attracted world-wide attention.
Its also something of a reversal of the typical information technology (IT) outsourcing story. Instead of a North American firm cutting costs by shipping IT jobs to the developing world, this tech firm is setting up shop in Canada to develop software and international expertise.
Jobs are being created here and maintained here, Banerjee said. Here is a company that is not taking away but coming and investing here and saying clearly it is going to enhance its investment, adding more people, increasing the size of the centre, and taking expertise from the local market and delivering it around the world.
L&T Infotech is a subsidiary of Larsen & Toubro, a USD9.8 billion (U.S.) engineering, manufacturing & financial services company.
It offers a variety of technology services to banking and financial services, insurance, energy and automotive industries.
In financial services, L&T acts as a transfer agent, handling millions of investor records and account balances and transactions. It also offers trading, fund accounting, trading, and settlement services.
At the heart of the business it acquired from Citigroup is Unitrax, a record-keeping platform used by large mutual funds to keep track of customer accounts.
L&T Infotechs long-term plan is to enhance the software, add new features and export this technology to other markets around the world.
Canada is an attractive destination for financial services firms right now, Banerjee said.
The financial services industry is healthy and was not affected by the recent crisis as badly as other parts of the world. The market was better regulated and is now showing growth and momentum, Banerjee said. The government is also very pro the IT industry in terms of training and incentives. That makes it very attractive for an IT service provider to base themselves here.
In particular, the GTA offers a particular expertise in financial services, as well as technology, Banerjee said.